Fed Likely to Proceed with Rate Cut Despite Persistent Inflation

Reported about 8 hours ago

The recent inflation report indicates a continuation of steady price increases, but it is not expected to deter the Federal Reserve from a planned rate cut next week, although a substantial cut of 50 basis points seems unlikely. The Consumer Price Index revealed core prices rose by 3.1% in August, slightly exceeding expectations, while the broader inflation rate increased to 2.9%. With the job market showing signs of softening, markets are anticipating a 25 basis point interest rate reduction, which aligns with Fed Chair Jerome Powell's acknowledgment of shifting risks necessitating a policy adjustment.

Source: YAHOO

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